FedEx Corporation (FDX)
Working capital turnover
| May 31, 2024 | Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 86,948,000 | 86,820,000 | 87,251,000 | 87,900,000 | 89,461,000 | 91,930,000 | 93,402,000 | 94,062,000 | 92,823,000 | 90,497,000 | 88,366,000 | 85,455,000 | 82,773,000 | 78,752,000 | 74,723,000 | 71,484,000 | 69,211,000 | 69,660,000 | 69,189,000 | 69,689,000 |
| Total current assets | US$ in thousands | 18,207,000 | 17,424,000 | 19,117,000 | 18,887,000 | 18,610,000 | 17,944,000 | 18,217,000 | 19,606,000 | 20,365,000 | 19,466,000 | 20,747,000 | 19,546,000 | 20,580,000 | 21,710,000 | 21,265,000 | 18,903,000 | 16,383,000 | 12,541,000 | 13,198,000 | 13,017,000 |
| Total current liabilities | US$ in thousands | 13,355,000 | 13,308,000 | 14,248,000 | 13,811,000 | 13,586,000 | 13,580,000 | 14,039,000 | 13,765,000 | 14,274,000 | 13,990,000 | 13,884,000 | 12,910,000 | 13,660,000 | 13,566,000 | 12,115,000 | 11,195,000 | 10,344,000 | 10,325,000 | 10,547,000 | 9,935,000 |
| Working capital turnover | 17.92 | 21.09 | 17.92 | 17.32 | 17.81 | 21.07 | 22.36 | 16.10 | 15.24 | 16.53 | 12.88 | 12.88 | 11.96 | 9.67 | 8.17 | 9.27 | 11.46 | 31.44 | 26.10 | 22.61 |
May 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $86,948,000K ÷ ($18,207,000K – $13,355,000K)
= 17.92
The working capital turnover of FedEx Corporation has shown fluctuations over the past several periods. The ratio measures how efficiently the company is generating revenue from its working capital. A higher turnover indicates that the company is effectively utilizing its working capital to generate sales.
From the data provided, we observe that the working capital turnover for FedEx has ranged from a low of 8.17 to a high of 31.44 over the periods mentioned. The highest turnover of 31.44 was recorded in August 2019, indicating strong efficiency in utilizing working capital to generate revenue.
However, the ratio has fluctuated significantly over time, suggesting varying levels of efficiency in managing working capital. It is noteworthy that the company has experienced both highs and lows in terms of working capital turnover, which may reflect changes in business operations, economic conditions, or management strategies.
Overall, the trend of the working capital turnover for FedEx Corporation highlights the importance of closely monitoring how effectively the company is utilizing its working capital to support its revenue generation activities.